Brexit: Magnums and deodorant being stockpiled in case of no-deal exit

Consumer goods giant also building stocks of raw material in preparation for disruption and delays at the border

Caitlin Morrison
Friday 01 February 2019 09:30
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Unilever is stockpiling ice-creams and deodorant in case of a no-deal Brexit.

The consumer goods giant is building inventory of its popular Magnum ice-cream bars, which are made in Germany and Italy, in the UK in case of disruption and delays at the border after 29 March.

The company is also building up stocks of its deodorant brands, including Dove, Sure, Lynx and Axe.

Meanwhile, the firm is increasing stocks of raw materials in preparation for a potential cliff edge exit from the EU.

Alan Jope, chief executive of Unilever, said: “A few weeks of extra inventory is one of the important steps we are taking to make sure that we minimise any disruption to our customers and consumers.

“One of the lessons we learn over and over again is when you do build inventory, it very often ends up being not exactly the right mix of products.”

Mr Jope said “weeks of inventory, not months and not days” was the correct amount of stock for Unilever to hold onto.

Several companies have outlined plans to stockpile ahead of Brexit due to concerns over potential disruption if no deal is agreed before 29 March.

Last year, Majestic said it would import an extra £8m of wine, while Gate Gourmet, the world’s largest supplier of airline meals, said last month that it was stockpiling in preparation for up to 10 days of disruption.

Meanwhile, research published last week revealed that companies are now holding onto cash in readiness for uncertain trading conditions in the months ahead.

Additional reporting by news wires

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